Question

When goods are purchased for the joint venture out of joint bank A/c the amount is debited to ___________.

• A. Joint bank A/c
• B. Joint venture A/c
• C. Purchases A/c
• D. None of the Above

Answer 1

The correct option is B Joint venture A/c

Joint venture accounting is used to record the financial transaction when two or more businesses are carrying out a business venture together.

For the purpose of accounting, a separate bank account is opened. All expenses are recorded in a separate account which is called joint venture account.